Minister Powell will introduce a bill to Parliament to dismiss the council and appoint an administrator until the next council elections in 2016.

She said a toxic workplace environment had resulted in the 'unpredecented' departure of senior staff including the chief executive officer Doug Sharp.

The Minister's proposal comes following recommendations made by inspector Peter Stephenson who was appointed in May to oversee the council.

"During my interviews with those who had conducted these key reviews, the constant theme conveyed to me was that the behaviour and performance of the Rural City of Wangaratta Council was the worst that they had observed," Minister Powell said in a statement.

The Opposition has indicated it will support the legislation to sack the council, but speaking to Joseph Thomsen on ABC Goulburn Murray's morning program, Opposition spokesperson for local government Richard Wynne criticised the Minister for not acting sooner.

Councillors contacted by ABC Goulburn Murray said they had received no prior warning of the Minister's decision. Cr Julian Fidge was the only councillor willing to speak on-air. He called on his fellow councillors to challenge the decision in the Supreme Court.

Former councillor Lisa McInerney, who resigned from council in May after taking stress-related leave, told Joseph Thomsen she cried with relief when she heard the announcement.

You can listen to interviews with Cr Julian Fidge, former councillor Lisa McInerney, Municipal Association of Victoria chief executive Rob Spence and Opposition spokesperson for local government Richard Wynne, as well as the press conference given by Minister Jeanette Powell, in the audio attached.